Monday

Aug 6, 2018 at 6:36 AMAug 6, 2018 at 6:36 AM

POWELL — The decision would appear easy: Let voters decide whether the city needs an income-tax increase for road and infrastructure work.

All members of the Powell City Council agree that one of the state's fastest-growing cities can't keep pace with long-overdue repairs. And the 18 members of a citizens task force assigned by the council to study the problem unanimously agreed that raising the tax from 0.75 percent to 1.15 percent is the answer.

Yet, in a two-hour council meeting last week, concerns were raised by Councilman Brian Lorenz and others about not rushing into a decision, especially given a failed bid for new taxes in 2010.

The council must decide by Wednesday whether to put the issue on the Nov. 6 ballot.

Powell's tax rate hasn't changed in 27 years and is among the state's lowest. The increase would add $2 million in annual revenue to the current $5.5 million.

Surveys show that residents want expanded parks, extended bike trails and other amenities. But city leaders say the priority should be maintaining the 120 lane-miles of streets and curbs, 77 miles of storm sewers and 24 miles of bike paths. If voters approve the tax hike, the issue would require that at least 25 percent of all income-tax revenue be spent on maintenance.

"It's our obligation to solve this," said Lorenz, "Just like with health, safety and welfare" issues.

But he said there are alternatives to a tax hike that, with patience, could resolve the problem, including economic development.

"We need to have more time to discuss a backup plan," he said.

Others say that delays will only cost more later.

Councilwoman Melissa Riggins said the task force's recommended solution is the best option.

"Basically, people pleaded for the input. I just don't know that pushing it off to another time is going to bring more ideas forward," Riggins said.

Nico Franano was among about 15 residents to discuss the issue at Tuesday's council meeting. He supports an increase, but he said he wants fairness, including a 100 percent tax credit for the many residents who pay taxes to other cities where they work. Under the proposed plan, the current 0.25 percent credit would increase to 0.50 percent.

"It's time that you spend the same amount as your neighbor does ... so everybody shares equally the burden to move Powell forward," he said.

Social Security and pension income are not considered earned income and are not subject to the income tax.

The city has been hampered by a flat gasoline tax, the loss of estate-tax revenue, and state cuts in funding for local governments, he said. The loss of about $500,000 annually is about what the city spends on maintenance.

And budget cuts alone aren't enough, the task force concluded: An across-the-board cut of 4 percent would save about $330,000 per year but would compromise essential services, including public safety.

The issue returns before the council for a likely vote Tuesday. But not before additional debate.

"There will never be a tax rate that will provide pure equality across the board," said Councilman Tom Counts. "Can we wait another year? Maybe. But everything gets pushed back."

"We only get so many bites at the apple," added Councilman Daniel Swartwout. "I want to make sure that we're 100 percent clear and 100 percent vetted."

Gary Johnson, a former Marysville fire chief and 18-year Powell resident, said the city must act.